The proposal to grant interest relief to those who pawned gold jewellery in licenced banks during the economic crisis has received Cabinet approval.
It has been proposed to grant interest relief, subject to a maximum of an annual 10%, for pawn advances that do not exceed Rs.100,000/-, that were obtained from licenced banks, on or before 30th June 2024, on an individual basis.
According to the government, the economic crisis experienced within the country during the past negatively affected every sector of the economy both directly and indirectly, and as a result of the crisis, the pawning of gold jewellery accelerated.
The arrears of pawn advances of Rs. 210 billion in the year 2019 increased up to Rs. 571 billion by March 2024, making it a growth of 172%. Considering the said circumstances, licenced banks have recognized the necessity of granting relief to low-income generating communities who have obtained pawn advances from them.
Accordingly, the Cabinet approved the proposal presented by the President to implement an appropriate programme to grant interest relief by the General Treasury, subject to a maximum of an annual 10% for pawn advance that does not exceed Rs. 100,000/- that has been obtained from licenced banks on or before 30th June 2024 on an individual basis.